IRDA has clarified that assessment of losses has to be done by only a licenced surveyor in cases where the claimed amount exceeds Rs 20,000. Surveyors take up jobs from general insurance companies assessing losses in motor vehicle, fire and other types of insurance policies on the basis of which claims are paid. Assessing losses due to vehicle accidents forms a chunk of business for these professionals.
The chairman of IILSA Iqbal Tadha has alleged that insurance companies are using various roundabout methods to dodge the IRDA direction. They have appointed around eight firms to survey the claims. The firms, in turn, use non-qualified persons to do the job. "Such kind of outsourcing not only leads to concentration of business into the hands of a few players but also violates IRDA direction," said Tadha. He was in the city recently to attend a seminar of this association.
Tadha said the IILSA has written a letter to the IRDA last week apprising the regulator about one M/s Autorisk which has been awarded a contract by general insurers. Such firms, he alleged, are appointing a number of non-qualified surveyors for the job, no matter what the quantum of claim is. There are more such firms and separate letters about each will be sent to the IRDA shortly, he added.
The licence is issued by the IRDA, and while IISLA is an association of the surveyors. It is not mandatory to become the member of this body. However, sources here say that it is likely that IRDA would come up with a rule on having compulsory affiliation to the association.
"Insurance firms, especially the private ones, often do not decide the claim payable by totally considering the surveyor's report. The firm has a discretion to do so, but then it is a misuse of that power. Though the broad outline of the report is considered, it is ensured that the amount of claim is reduced considerably. This only leads to the insured person's loss," added Tadha.
Even as the IRDA has recently issued the letter clarifying the Rs 20,000 limit, it was already there in the law and the regulator had only reminded the industry about it. However, rampant violation continues, added another office-bearer.
THE IILSA has pointed out that at times when the insurers offer discounts or vacation packages, it can also lead to a loss for the customer when it comes to getting the claim. To adjust their cost of the package or discount, the agents simply increase the excess claim amount, even without the knowledge of the customer. The excess claim is the threshold up to which the claim can be forgone. This means a customer can forego a claim for losses up to an initial specific amount. "So, the customer may not even know and he may not have a cover for first Rs 10,000 or so," alleged a member of IILSA.
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